Consider an economy facing a recessionary gap in the short-run. Expansionary fiscal policy leads to _____ while an economy’s self-correcting mechanism leads to _____ Question 39 options: a) deflation; cost-push inflation b) demand-pull inflation; deflation c) deflation; demand-pull inflation d) demand-pull inflation; cost-push inflation
Consider an economy facing a recessionary gap in the short-run. Expansionary fiscal policy leads to _____ while an economy’s self-correcting mechanism leads to _____ Question 39 options: a) deflation; cost-push inflation b) demand-pull inflation; deflation c) deflation; demand-pull inflation d) demand-pull inflation; cost-push inflation
Chapter15: Fiscal Policy
Section: Chapter Questions
Problem 5SQ
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Consider an economy facing a recessionary gap in the short-run. Expansionary fiscal policy leads to _____ while an economy’s self-correcting mechanism leads to _____
Question 39 options:
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